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Monday, August 15, 2011

Customers buy from brands that stand for something

A recent WWD article cited that in the last 7 years, the percentage of people who felt that brands and logos were important went from 3% to 29%. So why the jump?

When we make a purchase, we don’t just buy an item, we buy into a promise. Let’s face it, a new handbag isn’t going to change your life (or so I tell myself as I wish for that Mulberry handbag), but the feeling you get from associating with that product….now that’s powerful.

That’s why, even during a recession, the luxury brands fared remarkably well (Burberry just announced a 40% increase in profits…in this economy!). They continued to invest in connecting with their clients on a deeply emotional level. By the same token, that’s why many value driven brands are struggling….aside from being cheap, it’s hard to determine what they stand for.

During uncertain economic times, it’s easy to go for the fast buck, but it’s important for all businesses to keep their eye on the bigger picture i.e know your client and continually work to improve your product or service. As sure as night follows day, bad economies improve….the goal is to stay true to your vision and make sure that the first person your customer turns to when she’s ready to spend, is you.

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